U.S. Rep. Bryan Steil, R-Wis., told Newsmax on Friday that President Joe Biden's new student loan debt forgiveness proposal does nothing to address the underlying problem of the prohibitive cost of education.
The Biden administration announced Friday the federal student loan debt of more than 804,000 borrowers that totals $39 billion will be forgiven in the coming weeks. The move comes two weeks after the Supreme Court ruled Biden's initial plan to forgive more than $400 billion in federal student loan debt was unconstitutional.
"What should really frustrate the American people more than anything is his plan does nothing to solve the underlying problem, [which is] the high cost of higher education," Steil, chair of the Committee on House Administration, told "American Agenda."
"It's pretty clear we're going to play a cat-and-mouse game with the president of United States as he continues to try to stick the American people with a bill that should be paid by those people that took out the loan in the first place."
Steil, also a member of the House Financial Services Committee, said the plan offers no incentive to colleges and universities to lower tuition rates if they know the federal government will, in essence, be paying for students' tuition by forgiving their federal loans.
"His plan actually encourages universities and colleges to just keep raising tuition," Steil said. "Why? Because at the end of the day, he's trying to convince the American people that the students taking out the loans aren't going to foot the bill. They're not going to be price sensitive. They're not going to measure the education in the manner that they should.
"This is not only a bad plan for America today, it is a bad plan for America in the long term, as well."
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